Voyageur Pharmaceuticals Ltd.

Featured Company / Voyageur Pharmaceuticals Ltd.

The contrast media market isn’t one of those hot button segments that Wall Street devotes much time covering. It should be. It’s a steadily expanding industry within the lucrative healthcare sector and forecast by MarketsandMarkets to experience about 4% growth annually to reach $5.5 billion in the next three years.

Unless technology somehow erases established standards of care, which isn’t going to happen anytime soon, contrast media agents will remain critical to public and private diagnostic centers. Radiographic contrast agents are substances used to enhance the visibility of internal structures in X-ray-based imaging techniques, such as MRI, CT scans (computed tomography), projectional radiography and fluoroscopy. These agents are used every day in essentially every country on the planet to diagnose internal conditions without having to cut a patient open.

Every minute, seven American baby boomers turn 65. That means over 10,000 men and women every day – over 3.65 million people every year – are reaching retirement age in the U.S. This rate isn't expected to slow down until at least 2029, creating a robust radiographic healthcare market. The tailwinds are getting strong too. Over the next two decades, the population of people over 85 will double on the current trajectory.

In fact, GE Healthcare (NYSE:GE), a leading player alongside Germany’s Bayer HealthCare (OTC:BAYRY) and Bracco Imaging SpA, reported that contrast media usage has increased a whopping 40% in the last five years.

Bracco is particularly interesting because of its history as an integrated supplier of media contrast agents. Back in 1990, the Italian company shelled-out $250 million to acquire EZ-EM Canada to secure its own barite reserves, a commodity critical to the barium agents. Bracco, which generates about $1.3 billion in annual revenue, owned an operating barium sulfate mine for years until it was closed due to depleted reserves.

Following in the footsteps of Bracco’s model, is Voyageur Pharmaceuticals (TSX-Venture:VM), a company investors should get to know considering the business strategy, assets and the fact the company’s market cap is only C$3.4 million (US$2.6 million).

It’s arguable that Voyageur is the only medical company in the world that owns 100% long-term supply of the active pharmaceutical ingredients (API) vital to a specific medical procedure used every second worldwide.

Think about that. Understand that the mark-up for an API from raw material to bottle can be around 5,700%. Through its business units, Voyageur has the opportunity to control all input costs from mineral production to pharmaceutical manufacturing to manufacture radiocontrast in bottles for distribution. There is no reliance on commodity market conditions, especially one like the barium market, which relies on a single Chinese company to supply natural barium sulfate to the world. As recently as 2013, the world was experiencing shortages that affected radiology practices. By eliminating the middlemen and controlling costs, Voyageur will have a competitive advantage over all competitors, including majors.

To that point, the company’s motto is appropriately “From the Earth to the Bottle”.

Voyageur has three subsidiaries: Voyageur Industrial Minerals, ImagingX Pharmaceuticals and Voyageur Inc. These business units are compelling in and amongst themselves, but as a group – and with its Joint Venture partners - they have Voyageur looking much bigger than its market cap and a one-of-a-kind radiocontrast pharmaceutical supplier.

Through its resource unit, Voyageur owns a multitude of properties, three of which are barite-bearing: Frances Creek, Pedley Mountain and Jubilee Mountain in British Columbia. Frances Creek, the highest-grade resource, currently has a NI 43-101 compliant report (July 2018), which assigns the property a mineralized resource of 166,210 tonnes barite in the indicated category and 195,678 tonnes inferred grading 36.4% BaSO4 (barium sulfate). That’s estimated to be enough to supply ImagingX the barium sulfate it needs for +30 years.

VM also owns two Iodine/Lithium projects in Utah: Lithium King and ULI. The mineral brine project is a joint venture with Anson Resources (ASX:ASN) and known to contain high levels of iodine (also used in healthcare with growing demand owing to real time x-ray steroid and stem cell injections), lithium (everyone has heard about the projections there with electric vehicles) and bromine (used in pharmaceuticals, agricultural chemicals and more). (Anson Resources has a published JORC report stating a resource of 21,800 tonnes iodine)

ImagingX is a 50/50 JV with Chief Medical Supply Ltd., a leader in manufacturing, distribution, and sales of pharmaceutical products in Canada. Voyageur made the savvy move to partner with Chief Medical to expedite production and sales of barite and iodine into the market. The company plans to outsource the commodities to fast track cash flow as it works to commercial production at its Frances Creek barite property and ULI iodine property in Utah.

Once sourcing their own materials, prices should substantially decrease, sending profit margins upward.

Chief Medical brings a turnkey barium and iodine production facility to the table for ImagingX, not to mention pharmaceutical expertise in manufacturing, regulatory, licensing, distribution and sales. All told, the JV gives Voyageur access to about $150 million in GMP pharmaceutical manufacturing infrastructure, as Chief has one of the largest pharmaceutical manufacturing facilities in North America. It’s plant in Mississauga, Ontario has multiple lines capable of producing over 500 sterile bottles per minute.

Per the JV, Voyageur Minerals will handle supply of API barium sulfate and iopamidol for Chief Medical to formulate and manufacture products that will be sold by ImagingX.

The company is wasting no time in moving the pipeline forward. Three barium contrast products have been submitted to Health Canada for registration already with two more expected in the near term followed by at least seven more in the next year (including 4 iodine-based products).

It’s worth noting that iodine products today are nearly all imported from China & India. By producing its own material, Voyageur thinks it can come in 30%-35% lower in cost over Chinese goods. There are only a few FDA approved vendors for Iopamidol (iodine contrast) worldwide, one in Europe, one in China and one in India. The Chinese supplier was just recently shut down by the FDA. Owning and operating their own GMP iopamidol production facility in Canada will ensure supply chain security for Voyageur and the North American market.

Voyageur, via ImagingX, is focused on generic drugs, or copies of approved drugs not protected by patents anymore, where it can swipe market share by undercutting competition. By targeting 2nd and 3rd generation drugs, the company will keep costs at a minimum because these generics have the shortest approval times and registration costs.

Don’t be confused that older generics means a tough barrier to entry and tough competition for Voyageur. In fact, it will be the only generic manufacture of radiographic contrast in North America. The company will be in a good position as radiographic contrast products are one of the highest volume consumables in healthcare and 100% price driven.

Clearly, Voyageur is not some run-of-the-mill mineral company. Indeed, it may be the most unique company in the healthcare space today with operations spanning mining, manufacturing and sales initially centered on the lucrative barium sulfate and iodine radiography markets. Eventually, the company intends to expand into other active pharmaceutical ingredients, but the near-term is plenty to keep shareholders looking for developments as it works to execute on delivering immediate sales in North American with expansion internationally in the future.

Corporate Snapshot:
Voyageur Pharmaceuticals Ltd.
Stock Symbol: VM
Stock Exchange: TSX-Venture
Sector: Basic Materials
52 Week High: $0.1200
52 Week Low: $0.0500

Current Stock Quote / Chart / News: Click here

Information as of December 01, 2019

The contrast media market isn’t one of those hot button segments that Wall Street devotes much time covering. It should be. It’s a steadily expanding industry within the lucrative healthcare sector and forecast by MarketsandMarkets to experience about 4% growth annually to reach $5.5 billion in the next three years.

Unless technology somehow erases established standards of care, which isn’t going to happen anytime soon, contrast media agents will remain critical to public and private diagnostic centers. Radiographic contrast agents are substances used to enhance the visibility of internal structures in X-ray-based imaging techniques, such as MRI, CT scans (computed tomography), projectional radiography and fluoroscopy. These agents are used every day in essentially every country on the planet to diagnose internal conditions without having to cut a patient open.

Every minute, seven American baby boomers turn 65. That means over 10,000 men and women every day – over 3.65 million people every year – are reaching retirement age in the U.S. This rate isn't expected to slow down until at least 2029, creating a robust radiographic healthcare market. The tailwinds are getting strong too. Over the next two decades, the population of people over 85 will double on the current trajectory.

In fact, GE Healthcare (NYSE:GE), a leading player alongside Germany’s Bayer HealthCare (OTC:BAYRY) and Bracco Imaging SpA, reported that contrast media usage has increased a whopping 40% in the last five years.

Bracco is particularly interesting because of its history as an integrated supplier of media contrast agents. Back in 1990, the Italian company shelled-out $250 million to acquire EZ-EM Canada to secure its own barite reserves, a commodity critical to the barium agents. Bracco, which generates about $1.3 billion in annual revenue, owned an operating barium sulfate mine for years until it was closed due to depleted reserves.

Following in the footsteps of Bracco’s model, is Voyageur Pharmaceuticals (TSX-Venture:VM), a company investors should get to know considering the business strategy, assets and the fact the company’s market cap is only C$3.4 million (US$2.6 million).

It’s arguable that Voyageur is the only medical company in the world that owns 100% long-term supply of the active pharmaceutical ingredients (API) vital to a specific medical procedure used every second worldwide.

Think about that. Understand that the mark-up for an API from raw material to bottle can be around 5,700%. Through its business units, Voyageur has the opportunity to control all input costs from mineral production to pharmaceutical manufacturing to manufacture radiocontrast in bottles for distribution. There is no reliance on commodity market conditions, especially one like the barium market, which relies on a single Chinese company to supply natural barium sulfate to the world. As recently as 2013, the world was experiencing shortages that affected radiology practices. By eliminating the middlemen and controlling costs, Voyageur will have a competitive advantage over all competitors, including majors.

To that point, the company’s motto is appropriately “From the Earth to the Bottle”.

Voyageur has three subsidiaries: Voyageur Industrial Minerals, ImagingX Pharmaceuticals and Voyageur Inc. These business units are compelling in and amongst themselves, but as a group – and with its Joint Venture partners - they have Voyageur looking much bigger than its market cap and a one-of-a-kind radiocontrast pharmaceutical supplier.

Through its resource unit, Voyageur owns a multitude of properties, three of which are barite-bearing: Frances Creek, Pedley Mountain and Jubilee Mountain in British Columbia. Frances Creek, the highest-grade resource, currently has a NI 43-101 compliant report (July 2018), which assigns the property a mineralized resource of 166,210 tonnes barite in the indicated category and 195,678 tonnes inferred grading 36.4% BaSO4 (barium sulfate). That’s estimated to be enough to supply ImagingX the barium sulfate it needs for +30 years.

VM also owns two Iodine/Lithium projects in Utah: Lithium King and ULI. The mineral brine project is a joint venture with Anson Resources (ASX:ASN) and known to contain high levels of iodine (also used in healthcare with growing demand owing to real time x-ray steroid and stem cell injections), lithium (everyone has heard about the projections there with electric vehicles) and bromine (used in pharmaceuticals, agricultural chemicals and more). (Anson Resources has a published JORC report stating a resource of 21,800 tonnes iodine)

ImagingX is a 50/50 JV with Chief Medical Supply Ltd., a leader in manufacturing, distribution, and sales of pharmaceutical products in Canada. Voyageur made the savvy move to partner with Chief Medical to expedite production and sales of barite and iodine into the market. The company plans to outsource the commodities to fast track cash flow as it works to commercial production at its Frances Creek barite property and ULI iodine property in Utah.

Once sourcing their own materials, prices should substantially decrease, sending profit margins upward.

Chief Medical brings a turnkey barium and iodine production facility to the table for ImagingX, not to mention pharmaceutical expertise in manufacturing, regulatory, licensing, distribution and sales. All told, the JV gives Voyageur access to about $150 million in GMP pharmaceutical manufacturing infrastructure, as Chief has one of the largest pharmaceutical manufacturing facilities in North America. It’s plant in Mississauga, Ontario has multiple lines capable of producing over 500 sterile bottles per minute.

Per the JV, Voyageur Minerals will handle supply of API barium sulfate and iopamidol for Chief Medical to formulate and manufacture products that will be sold by ImagingX.

The company is wasting no time in moving the pipeline forward. Three barium contrast products have been submitted to Health Canada for registration already with two more expected in the near term followed by at least seven more in the next year (including 4 iodine-based products).

It’s worth noting that iodine products today are nearly all imported from China & India. By producing its own material, Voyageur thinks it can come in 30%-35% lower in cost over Chinese goods. There are only a few FDA approved vendors for Iopamidol (iodine contrast) worldwide, one in Europe, one in China and one in India. The Chinese supplier was just recently shut down by the FDA. Owning and operating their own GMP iopamidol production facility in Canada will ensure supply chain security for Voyageur and the North American market.

Voyageur, via ImagingX, is focused on generic drugs, or copies of approved drugs not protected by patents anymore, where it can swipe market share by undercutting competition. By targeting 2nd and 3rd generation drugs, the company will keep costs at a minimum because these generics have the shortest approval times and registration costs.

Don’t be confused that older generics means a tough barrier to entry and tough competition for Voyageur. In fact, it will be the only generic manufacture of radiographic contrast in North America. The company will be in a good position as radiographic contrast products are one of the highest volume consumables in healthcare and 100% price driven.

Clearly, Voyageur is not some run-of-the-mill mineral company. Indeed, it may be the most unique company in the healthcare space today with operations spanning mining, manufacturing and sales initially centered on the lucrative barium sulfate and iodine radiography markets. Eventually, the company intends to expand into other active pharmaceutical ingredients, but the near-term is plenty to keep shareholders looking for developments as it works to execute on delivering immediate sales in North American with expansion internationally in the future.


Forward Looking Statements

This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. Voyageur Pharmaceuticals Ltd. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Voyageur Pharmaceuticals Ltd.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Voyageur Pharmaceuticals Ltd. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

© 1999-2019AllPennyStocks.com Media, Inc. All rights reserved. AllPennyStocks.com is not a Registered Broker/Dealer or Financial Advisor, nor do we hold ourselves out to be. All materials presented on our web site and individual reports released to the public through this web site, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views; opinions or recommendations contained herein will produce profitable results. AllPennyStocks.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), AllPennyStocks.com will disclose in its disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the AllPennyStocks.com web site. AllPennyStocks.com has been compensated five thousand dollars by a third-party, Frontier Consulting LLC. for its efforts in presenting the VM profile on its web site and distributing it to its database of subscribers as well as other services. AllPennyStocks.com may decide to purchase or sell shares on a voluntary basis in the open market before, during or after the profiling period of this report. Information presented on our web site and within our reports contain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will," "anticipates," "estimates, "believes," or that by statements indicating certain actions "may," "could," or "might" occur. THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SMALL CAP SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.

Other Penny Stock Movers

This Merger Candidate Should Start Moving Up
VistaGen Fast-Tracked by FDA for SAD Treatment
Tetra Jumps on Cancer Drug Tests
MacDonald Mines Hikes on New Discoveries


Back to Top